Bajaj Auto may further increase stake in e-mobility company Yulu
Writer Admin
Bajaj Auto is reportedly looking at increasing its stake in electric bike sharing company Yulu. According to sources in the EV industry, the Pune-based two wheeler major is looking to increase its current stake of just under 19% in Yulu to either majority or close to majority level.

Last year Bajaj Auto made an additional investment of Rs 45.75 crore in Yulu to take its stake to 18.8%. This was part of the $19.25 million or Rs 160 crore that Yulu raised from existing investors Magna and Bajaj Auto. Yulu has a partnership with Bajaj Auto to develop electric vehicles. When contacted, a Yulu spokesperson said in a mailed reply: “As a matter of policy, Yulu does not comment on market speculation.” Bajaj Auto, when contacted, did not wish to respond.

Market sources say Yulu’s relationship with Bajaj Auto could turn out to be like Ather’s relationship with Hero Motocorp. Last December Hero Motocorp increased its stake in Ather from 36.6% to 39.7%. Hero Motocorp has always been the most significant investor in Ather. Fellow two wheeler major TVS has made several overseas acquisitions including Swiss E-Mobility Group, Switzerland-based EGO and UK-based Norton Motorcycles. Auto industry sources say, these strategic relationships between traditional automotive majors and e-mobility startups will lead to greater consolidation and scale in the EV business.


Last April, Yulu launched Wynn, its EV for personal ownership, which is manufactured by CTL, a wholly-owned subsidiary of Bajaj Auto. Yulu also has a joint venture with its other major investor Magna for battery swapping channel Yuma Energy network.

 

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